One way of thinking about organizing to implement cost leadership strategies is that firms pursuing this strategy should be highly centralized, have high levels of direct supervision, and keep...

One way of thinking about organizing to implement cost leadership strategies is that firms pursuing this strategy should be highly centralized, have high levels of direct supervision, and keep employee wages to an absolute minimum. Another approach is to decentralize decision-making authority—to ensure that individuals who know the most about reducing costs make decisions about how to reduce costs. This, in turn, would imply less direct supervision and somewhat higher levels of employee wages. Why is this?